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S&P Global Market Intelligence Quarterly Report Finds Global M&A Deal Value Rose 18.5% YOY in Q1, Volume Fell to Lowest Level Since Q2 2020

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S&P Global Market Intelligence's quarterly report reveals that global M&A deal value rose 18.5% year-over-year in Q1 2024, despite the volume falling to its lowest level since Q2 2020. The total value of global M&A deals reached $594.47 billion, indicating ongoing market challenges due to increased interest rates impacting demand. The report highlights a decline in M&A transactions, alongside insights on IPO performance and equity issuance trends.

Il rapporto trimestrale di S&P Global Market Intelligence mostra che il valore globale delle operazioni di fusione e acquisizione è aumentato del 18,5% su base annua nel primo trimestre del 2024, nonostante il volume sia sceso al livello più basso dal secondo trimestre del 2020. Il valore totale delle operazioni globali di M&A ha raggiunto i 594,47 miliardi di dollari, segnalando sfide persistenti nel mercato a causa dell'aumento dei tassi di interesse che influenzano la domanda. Il rapporto evidenzia inoltre un calo nelle transazioni di M&A, insieme a osservazioni sulle performance delle IPO e le tendenze dell'emissione di azioni.
El informe trimestral de S&P Global Market Intelligence revela que el valor global de las transacciones de fusiones y adquisiciones aumentó un 18,5% en comparación anual en el primer trimestre de 2024, a pesar de que el volumen cayó a su nivel más bajo desde el segundo trimestre de 2020. El valor total de las transacciones globales de M&A alcanzó los $594.47 mil millones, indicando desafíos continuos en el mercado debido al aumento de las tasas de interés que afectan la demanda. El informe también destaca una disminución en las transacciones de M&A, junto con perspectivas sobre el rendimiento de las IPOs y tendencias de emisión de acciones.
S&P Global Market Intelligence의 분기 보고서에 따르면 2024년 1분기 글로벌 M&A 거래 가치는 전년 대비 18.5% 증가함에도 불구하고 거래량은 2020년 2분기 이후 가장 낮은 수준으로 떨어졌습니다. 글로벌 M&A 거래 총액은 594.47억 달러에 달해, 금리 인상이 수요에 미치는 영향으로 인한 시장의 지속적인 도전을 나타냅니다. 보고서는 M&A 거래 감소와 함께 IPO 성과 및 주식 발행 추세에 대한 통찰을 제공합니다.
Le rapport trimestriel de S&P Global Market Intelligence révèle que la valeur mondiale des transactions de fusion et acquisition a augmenté de 18,5% en glissement annuel au premier trimestre 2024, malgré une baisse du volume au niveau le plus bas depuis le deuxième trimestre de 2020. La valeur totale des transactions mondiales de fusion et acquisition a atteint 594,47 milliards de dollars, indiquant des défis continus sur le marché en raison de la hausse des taux d'intérêt affectant la demande. Le rapport met également en lumière une diminution des transactions de M&A, ainsi que des perspectives sur la performance des IPO et les tendances d'émission d'actions.
Der Quartalsbericht von S&P Global Market Intelligence zeigt, dass der globale Wert der Fusionen und Übernahmen im ersten Quartal 2024 um 18,5% gegenüber dem Vorjahr gestiegen ist, obwohl das Volumen auf den niedrigsten Stand seit dem zweiten Quartal 2020 gesunken ist. Der Gesamtwert der globalen M&A-Transaktionen erreichte 594,47 Milliarden US-Dollar, was anhaltende Marktherausforderungen aufgrund steigender Zinssätze, die die Nachfrage beeinflussen, anzeigt. Der Bericht hebt auch einen Rückgang bei M&A-Transaktionen hervor, neben Einblicken in die Leistung von IPOs und Aktienemissionstrends.
Positive
  • Global M&A deal value increased by 18.5% year-over-year in Q1 2024, reaching $594.47 billion.

  • Number of $10 billion-plus transactions reached 10, the highest level since Q2 2022.

  • Total value of first quarter US equity issuance hit $39.78 billion, the highest since Q4 2021.

Negative
  • Global M&A deal volume fell to the lowest level since Q2 2020, indicating ongoing market challenges.

  • Value of global IPOs declined by 6.9% to $23.19 billion in Q1 2024.

  • Total transactions contracted by 20.7% to 295 in the same period.

The uptick in global M&A deal value to $594.47 billion, representing a 18.5% year-over-year increase, is a notable trend against the backdrop of a decreasing deal volume. This dichotomy can be attributed to a concentration of larger deals amidst a general slowdown in M&A activity. The spotlight on $10 billion-plus transactions, hitting the highest count since Q2 2022, indicates that while smaller deals are hindered by the current economic environment, there remains a robust appetite for major strategic acquisitions. However, investors should note the overall decline in transactions as a potential sign of market caution. The increase in deal value could potentially boost sector-specific equity markets, but the decline in IPO performance and the reduced number of transactions could signal tightening market conditions and a possible shift towards consolidation in certain industries.

The report cites higher interest rates as a key headwind for M&A, increasing the cost of financing and bringing about economic uncertainty. This financial climate makes it more expensive for companies to leverage debt for acquisitions, possibly explaining the decrease in deal volume. Meanwhile, the equity issuance figure, especially in the US, reaching $39.78 billion—its highest since Q4 2021—suggests that there's resilience in capital raising activities, albeit selective. For investors, the current environment indicates that thorough due diligence is essential, as market dynamics are favoring entities with strong balance sheets and strategic imperatives for M&A. Long-term implications may include a shift in the types of companies that are targeted for acquisition, with a focus on those able to deliver synergies and efficiencies in a higher interest rate environment.

NEW YORK, April 30, 2024 /PRNewswire/ -- Despite Global M&A deal volume falling to the lowest level in almost four years, global M&A value increased in the first quarter of 2024, according to S&P Global Market Intelligence's newly released 2024 Q1 Global M&A and Equity Offerings Report. The total value of first quarter global M&A deals reached $594.47 billion, an 18.5% increase compared to the first quarter of 2023; however, the value of M&A transactions remains far below the levels recorded in the second half of 2020 and throughout 2021.

The continued drop in M&A transactions is an indication that the market still faces headwinds, which have plagued activity since the early part of 2022. Higher interest rates have increased economic uncertainty and the cost of financing, which have decreased demand for M&A activity.

"While optimism is gradually growing around M&A and equity issuance, questions still remain about interest rates, IPO performance and regulatory approval of transactions," said Joe Mantone, lead author of the report at S&P Global Market Intelligence. "Lower interest rates would add some fuel to dealmaking as it would lower the cost of acquisition financing and potentially boost equity prices, increasing what buyers pay for targets and entice more private companies to go public and provide a more conducive backdrop for increased private equity investments exits, which have been muted since the second quarter of 2022."

Global equity issuance activity since Q1 2022

Key highlights from the quarterly report include:

  • The number of global M&A announcements fell to 9,022, the lowest total since onset of the COVID-19 pandemic disrupted markets in the second quarter of 2020.
  • During the first quarter, the number of $10 billion-plus transactions reached 10, the highest level since the 11 recorded in the second quarter of 2022.
  • The value of global initial public offerings declined by 6.9% to $23.19 billion in the first quarter compared to the fourth quarter of 2023, and over the same period, total transactions contracted by 20.7% to 295.
  • The total value of first quarter US equity issuance reached $39.78 billion, the highest mark since the fourth quarter of 2021 recorded $102.93 billion in total equity issuance.

The quarterly report provides an overview of global M&A and equity issuance trends, offering insights into the sectors and geographies that are seeing the most activity. It also focuses on deals with the highest valuations and strategies larger players pursue that underscore trends occurring throughout an industry. S&P Global Market Intelligence has produced the quarterly global M&A and equity offering report since the first quarter of 2018.

To request a copy of the 2024 Q1 Global M&A and Equity Offerings Report, please contact press.mi@spglobal.com.

S&P Global Market Intelligence's opinions, quotes, and credit-related and other analyses are statements of opinion as of the date they are expressed and not statements of fact or recommendation to purchase, hold, or sell any securities or to make any investment decisions, and do not address the suitability of any security.

About S&P Global Market Intelligence

At S&P Global Market Intelligence, we understand the importance of accurate, deep and insightful information. Our team of experts delivers unrivaled insights and leading data and technology solutions, partnering with customers to expand their perspective, operate with confidence, and make decisions with conviction.

S&P Global Market Intelligence is a division of S&P Global (NYSE: SPGI). S&P Global is the world's foremost provider of credit ratings, benchmarks, analytics and workflow solutions in the global capital, commodity and automotive markets. With every one of our offerings, we help many of the world's leading organizations navigate the economic landscape so they can plan for tomorrow, today. For more information, visit www.spglobal.com/marketintelligence.

Media Contact
Kate Smith
S&P Global Market Intelligence 
+1 781 301 9311 
katherine.smith@spglobal.com or press.mi@spglobal.com 

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SOURCE S&P Global Market Intelligence

FAQ

What was the percentage increase in global M&A deal value in Q1 2024?

Global M&A deal value rose by 18.5% year-over-year in Q1 2024, reaching $594.47 billion.

What was the total value of first quarter US equity issuance in Q1 2024?

The total value of first quarter US equity issuance hit $39.78 billion, the highest since Q4 2021.

How many $10 billion-plus transactions were recorded in Q1 2024?

The number of $10 billion-plus transactions reached 10 in Q1 2024, the highest level since Q2 2022.

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